Sudan is set to begin a currency exchange process on December 10, aiming to retrieve approximately 200 trillion Sudanese pounds currently outside the banking system. This move comes as the nation faces an escalating economic crisis driven by war since April.
The currency exchange will be limited to bank deposits, with daily withdrawals capped at 200,000 pounds. Government sources revealed that General al-Burhan controlled SAF has taken control of gold revenues and mining company payments, while borrowing $2 billion from an unnamed neighboring country to stabilize the economy.
Economic Collapse and Hyperinflation
Hafez El-Zein of the “Qimem” coalition highlighted that the conflict since April 15 has caused a collapse in the banking sector, particularly in Khartoum and other cities.
Inflation has skyrocketed from 450% in April to 650% by September, sharply increasing the cost of living.
Military Spending Drains Resources
A finance ministry insider disclosed that $1.6 billion was spent over three months to equip fighters.
The SAF relies on tax, customs, and port revenues to fund its battle against the Rapid Support Forces (RSF), framing the conflict as a fight for Sudan’s “dignity.”
Agriculture Devastated by War
Agricultural expert Ghariq Kambal reported that RSF incursions and war have shuttered 80% of farming projects, particularly in Al-Suki and the Al Jazirah Project.
Blocked roads have disrupted diesel supplies, raising farming costs. Heavy rains and lack of financing have further compounded agricultural struggles, predicting a weak harvest for the season.
Hyperinflation and Financial Instability
Economist Wael Fahmy warned of worsening conditions as the money supply surpassed 900 trillion Sudanese pounds by the end of 2022, with most circulating outside banks. Money printing and counterfeiting during the war have exacerbated hyperinflation, officially estimated at 300% but believed to exceed 650%.
The government continues to fund its war effort by printing money, while production and infrastructure remain crippled. Fahmy described the 2024 and 2025 financial plans as “war budgets” and noted increased Russian involvement in Sudan’s gold and oil sectors following agreements with Moscow.
Bleak Outlook
Sudan’s economic crisis threatens the livelihoods of its people, with hunger, poverty, and disease becoming widespread. As the conflict drags on, the nation’s financial and social stability hangs by a thread.
